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Check my work Velma and Keota (VK) is a partnership that owns a small company is considering two alternative investment oppor
TABLE 1 PRESENT VALUE OF $1 5% 6% 8% 9% 10% 12% 14% 16% 20% 1 0.961538 0.952381 0.943396 0.934579 0.925926 0.917431 0.909091
TABLE 2 PRESENT VALUE OF AN ANNUITY OF $1 n 4% 5% 7% 8% 9% 10% 12% 14% 16% 1 0.961538 0.952381 0.943396 0.934579 0.925926 0.9
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Answer #1

Internal Rate of return

a.

First Investment

20

%

Second investment

14

%

b.

V & K should select

First investment as it has higher IRR

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